Little and Large – 11 February 2011
First Published Friday, 11th February 2011 03:04 pm from Fidessa : Steve Grob
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Looks like Canada was a good place to pick as the venue
for the first Fidessa Fragmentation Forum of 2011. Around 140
representatives from Canada's financial community
HQ in Toronto to discuss fragmentation and Canada's role in
global financial markets. Naturally, much of the discussion
TSX and its implications for the market as a
The charts below show the extent to
target="_blank">LSE and the
target="_blank">TSX have both witnessed considerable
fragmentation of their domestic liquidity and this has probably
led both exchanges to be much more amenable to the strategic
tie-up announced on Wednesday.
href="http://fragmentation.fidessa.com/wp-content/uploads/FTSE100_alternative3.png"> class="aligncenter size-full wp-image-2292"
alt="" width="576" height="319" />
href="http://fragmentation.fidessa.com/wp-content/uploads/TSX60_alternative3.png"> class="aligncenter size-full wp-image-2293"
alt="" width="577" height="319" />
Euronext this week also illustrates how primary
exchanges are entering a new phase in their war against the
big guys have worked out that maybe the best plan is just to get
even bigger. It's ironic that, in their bid to break up
the monopolies of the national operators, the regulators are
actually having the opposite effect and creating global ones
By a bizarre coincidence, our Sydney
Fragmentation Forum last year coincided with a similar
ASX. Both of these announcements raised
the issue of whether these mergers are fully in the "national
interests" of the countries whose exchanges are being acquired.
The simple fact is, however, that the concept of a national stock
exchange died when the regulators first started to put pen to
I imagine that the CEOs of other
national exchanges are watching these events carefully and
pondering the fact that, in the venue space, you've either got to
be really niche and focused or simply huge.
Let me know what you think and we'll share the
results next week.
Note: There is a poll embedded
within this post, please visit the site to participate in this
Anyway, looking forward to the next
Fragmentation Forum and what further announcements it may